There will be other houses
So... not moving move forward with a new home buy right now. The flaky real estate market and uphill battle of selling the current house - or opting to rent it out - open up too much uncertainty and risk. We'll start over again in the spring if/when things are looking better.
I'm completely bummed about losing the house. I really fell in love with the place and opting not to push forward wasn't an easy decision - but it feels right in many important ways.